Statkraft AS: Result for the third quarter 2019

Statkraft recorded an underlying EBIT amounting to NOK 2899 million in the third quarter of 2019. This was an increase of NOK 219 million from the corresponding quarter last year. The increase was mainly driven by improved results from Market operations.

The average Nordic system price in the quarter was 34.7 EUR/MWh, a decrease of 31 per cent compared with the same quarter in 2018. Total generation was 14.9 TWh in the quarter, an increase of 1.8 TWh. The increase in generation was primarily related to gas-fired power.

"The increase in EBIT in a market with falling power prices demonstrates strong operations and Statkraft’s robustness," says CEO Christian Rynning-Tønnesen.

Statkraft’s long-term outlook to the energy market has changed. This has led to both impairments and reversal of previous impairments in the quarter. The net effect was positive with NOK 133 million. A weakening of NOK against EUR led to negative and mainly unrealised currency effects amounting to NOK 912 million.

The quarterly net profit ended at NOK 656 million. This was a decrease of NOK 609 million. Cash flow from operating activities reached NOK 8429 million in the quarter. Underlying EBIT year-to-date is NOK 11 948 million, an increase of NOK 1879 million compared with the same period last year. Net profit year-to-date is NOK 7531 million. This is NOK 4287 million lower than the same period last year which included NOK 7125 million in gains from divestments.

Statkraft has entered into a new long-term power contract with Wacker Chemicals Norway for the period 2021-2027 with a total volume of 600 GWh. Statkraft acquired a portfolio of solar projects (326 MW) in Ireland and the electric vehicle charging company E-WALD in Germany. Acquisitions of wind projects in Chile (102 MW) and Brazil (664 MW) have strengthened Statkraft’s position in these markets.

In October, Statkraft successfully participated in an auction in Brazil and was awarded power purchase agreements supporting investments of 500 MW in wind power. "The auction result confirms Statkraft’s competitiveness within wind power in Brazil, and provides the basis for constructing a major wind farm project in Brazil," says Rynning-Tønnesen.

The transactions and power purchase agreements contribute to deliver on Statkraft’s strategic growth ambition within renewable energy.